Decarbonize your city with an integrated approach

Localized decarbonization strategies should be a key element in any nation’s attempt to minimize and moderate their carbon emissions. It can seem like a daunting task, but adopting a holistic, ‘systems thinking’ approach makes the process more manageable, efficient and effective. Helena Rivers, our Europe energy transition lead, explains how systems thinking can help overcome many of the challenges typically associated with city-scale decarbonization.

City-wide decarbonization efforts are often driven by national, state or local government emissions targets and associated grant or incentive opportunities to support these. To meet these targets, authorities and estate managers can often fall into the trap of working in decarbonization silos; for example, tackling issues around heating, electric vehicles (EVs) or public transport independently. The default method is to focus on individual short-term solutions, but addressing these areas separately can result in inefficiencies and challenges down the line. 

The big-picture approach 

Intelligent integration is a way of holistically viewing decarbonization pathways. The focus remains on emissions reduction, while also identifying efficiencies that might be gained or secondary effects that could be mitigated. A systems thinking approach is crucial in prioritizing demand and determining the best solutions — whether that’s adopting clean fuels for transport or implementing alternative heat sources into buildings. It also integrates energy resilience naturally throughout the demand reduction and local generation/storage processes. This is particularly important when considering the geopolitical factors affecting energy supplies today and the grid instabilities we are increasingly seeing.

With a systems thinking approach — leveraging new infrastructure for multiple uses and with local generation and storage, integrated into the wider networks — cities can significantly improve energy resilience and support essential services during disruptions, emergencies or peak demand periods. This can be achieved through a combination of local solar panels, energy storage, heat storage, smart controls and interconnection. Further, diversifying energy sources strengthens energy transition efforts (such as demand reduction and electrification), making regions more resilient and reducing the need for so much infrastructure upgrade or state-level storage solutions  

Overcoming the challenges 

Systems thinking has many benefits, but there are still challenges that need to be considered and overcome. The benefit of this approach, though, is that many solutions can be assessed and integrated from the outset. The top three challenges cities face include: 

1. Funding. In the long run, well-designed decarbonization policies can lead to reduced costs for everyone (as demonstrated below), yet implementing these policies involves significant upfront investment. In the short term, these costs must be affordable for the end-user and not place individual households in a position where they cannot afford the cost of their energy needs.  

A systems thinking approach — looking at the picture as a whole — can collate multiple schemes, increasing the value and therefore the attractiveness of the funding proposition. For example, coordinating the installation of heat networks, EV charging infrastructure, smart grids and cycle lanes can reduce costs and minimize disruption by aligning civil works. Similarly, combining building-level improvements with generation initiatives can unlock different private sector funding streams. 

‘Techno-economic modeling’ can also help illuminate investment opportunities by estimating the technical performance and economic viability of a proposed project. By showing how a project can work in practice, potential funders can have greater confidence in the return on investment (ROI) of decarbonization. 

Alternative financing models, such as public-private partnerships (P3s), can also help cities fund critical infrastructure upgrades. For example, we designed and implemented the largest wastewater heat recovery district energy system under a P3 at the National Western Center in Denver, Colorado, U.S.. In what would typically be an out-of-reach capital investment and operational challenge for a city to undertake through traditional financing methods, the City of Denver established a dedicated authority to focus on the management and facilitation of third-party financing, delivery and operations. By structuring financing in this or similar ways, cities can implement ambitious decarbonization projects and do so in shorter time frames, maximizing the benefits.

To this end, we supported Miami, Florida, U.S. in developing its Climate Action Plan to achieve carbon neutrality by 2050. This work included a whole-system analysis of the city’s green economy and identification of the key green industries primed for growth. Among these are solar energy initiatives, transportation electrification and increasing micro-mobility options – all of which would help achieve a reduction in greenhouse gas emissions, support the local economy and deliver worthwhile financial returns. 

2. People. Driving behavioral change is an essential part of the system. Technologies like EMS (environmental monitoring systems) can incorporate artificial intelligence to provide more accurate demand control for utilities by tailoring energy use around individual lifestyles. However, many people are uncomfortable about losing authority over their energy provisions — a challenge that extends to other carbon-intensive sectors, such as transportation.  

A systems thinking approach encourages communities to work with behavioral change experts, outreach specialists and community engagement leaders. By clearly communicating the long-term financial and environmental benefits of championing new habits in a relatable way, cities can win the support of both residents and businesses. 

We’ve been working with the Greater Manchester Combined Authority (GMCA) to implement a systems thinking approach to help them meet their heat decarbonization targets. The integrated program seeks to support the delivery of strategic scale heat decarbonization — large-scale efforts that connect multiple urban areas — at the city and city-region level. We developed business cases for portfolio–level programs, focusing on assets under the control or influence of GMCA and the local authorities across Greater Manchester that are built on tangible projects with both technical and commercial solutions. Consumer choice plays a critical role in the success of these solutions, and building public confidence and understanding in heat networks can significantly improve both the commercial viability of the program and the carbon savings achieved as more buildings connect.

3. Avoiding grid constraints. Moving away from fossil fuel generation hubs places greater strain on different parts of the electricity network, including local systems. On a micro scale, heat pumps have been identified as a cleaner solution to home heating and hot water, but they are already putting a heavy load on the grid. 

A systems thinking approach helps cities and utilities view the broader picture. By shifting demand onto private wires and ‘microgrids’ — networks of campus– and community-scale energy infrastructure — they can lighten the load on the main grid, reduce costly upgrades and deliver major program savings for communities and local businesses. This approach can also strengthen overall grid resilience and enable smarter, more efficient energy use. Over the past several years we’ve partnered with the City of San Jose in California, U.S., to analyze, develop and design microgrids and resiliency solutions for various sites. We integrated novel technologies into new and existing electrical power grids for efficient microgrid deployment for a convention center, community center, amusement park and the zoo. This resulted in increased operational resilience, demand management reliability, and energy supply decarbonization across the city.  

Taking the first steps towards systems thinking 

Realizing national and international climate ambitions will demand a shared effort, with towns, cities and states playing a vital role. Barriers such as securing funding, encouraging meaningful behavioral change and managing energy demands are real — but not insurmountable. With a systems thinking approach, these challenges can be addressed through coordinated action built around lasting community buy-in.  

City-wide decarbonization is about more than reducing emissions — it’s about people, communities and creating places where clean, reliable energy supports better homes, more connected transport and stronger local economies. Systems thinking can help reduce energy bills, strengthen energy resilience and achieve emissions goals.  

Decarbonization at the city-scale isn’t easy — but with the right partner who sees the big picture and applies a systems thinking approach, the benefits for your communities and local economy are well worth the effort.   

To learn more, visit: Portfolio decarbonization and climate resilience.